When Will CleanSpark, Inc. (NASDAQ:CLSK) Become Profitable?
CleanSpark, Inc. (NASDAQ:CLSK) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. CleanSpark, Inc. provides bitcoin mining and energy technology solutions worldwide. The US$168m market-cap company posted a loss in its most recent financial year of US$22m and a latest trailing-twelve-month loss of US$8.1m shrinking the gap between loss and breakeven. The most pressing concern for investors is CleanSpark's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
View our latest analysis for CleanSpark
CleanSpark is bordering on breakeven, according to the 3 American Software analysts. They expect the company to post a final loss in 2022, before turning a profit of US$6.6m in 2023. The company is therefore projected to breakeven just over a year from now. How fast will the company have to grow each year in order to reach the breakeven point by 2023? Working backwards from analyst estimates, it turns out that they expect the company to grow 120% year-on-year, on average, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Underlying developments driving CleanSpark's growth isn’t the focus of this broad overview, but, keep in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing we’d like to point out is that CleanSpark has no debt on its balance sheet, which is rare for a loss-making growth company, which typically has high debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.
Next Steps:
There are too many aspects of CleanSpark to cover in one brief article, but the key fundamentals for the company can all be found in one place – CleanSpark's company page on Simply Wall St. We've also compiled a list of key aspects you should look at:
Historical Track Record: What has CleanSpark's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on CleanSpark's board and the CEO’s background.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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